According to Reuters, Google’s Russian business is going to declare bankruptcy after local authorities confiscated its bank accounts, assets, and property. A spokeswoman for the corporation revealed that the global software giant lacks the finances to pay suppliers, vendors, and workers.
‘Russian authorities’ seizure of Google Russia’s bank account has made it untenable for our Russia office to function, including employing and paying Russia-based employees, paying suppliers and vendors, and meeting other financial obligations,’ said a spokesperson, Julie Tarallo McAlister, in a press statement. Google Russia employs around 100 people.
Google, on the other hand, stated that it will continue to provide free services such as Search, Maps, YouTube, and Gmail in Russia for the time being. The business affirmed that there will be no modifications to Google’s Android operating system or Play store app. After Russian President Vladimir Putin invaded Ukraine, the firm faced enormous criticism after restricting access to Russian media on YouTube and suspending its commercial activity in the nation.
According to Reuters, a TV program run by a sanctioned Russian tycoon announced in April that the sleuths had confiscated 1 billion roubles ($15 million) from Google for failing to restore access to its YouTube account. However, it is unclear if the seizure of this capital has caused Google to declare bankruptcy.
Google was fined 7.2 billion roubles in December for what Moscow said was a recurrent failure to erase information deemed unlawful in Russia. Because of an enforcement cost, the fine was increased by 506 million roubles. Alphabet, Google’s parent firm, said last month that Russia accounted for 1% of its sales last year, or around $2.6 billion.